Tyranny

“And that’s exactly what you’ve got coming here…”


W.C. Varones tells of meeting a Cassandra.

H/t to the Prof, who blows it off.

We’ll know more in six months.

Tempus fugit.

Muir: Pattern


See the entire excellent ‘toon here; see also this related link.

Ask Max


AG has an “open question forum” going for soldier, author, and trainer Max Velocity.

Go and ask away!

Surrounded By Flattery Wherever You Go


…This post contains just a few paragraphs of commentary followed by the complete English translation of the letter from Der Gerade Weg. It’s a long letter, but I think it provides a valuable view into the perilous national situation in early 1930′s Germany. That situation involved the clear danger of a smitten and careless national press, ambivalence about public lies and a political party that, in Fr. Naab’s words, “promises all things to all men, even the most contradictory things.”

Thanks to 4GFC.

UNSUSTAINABLE

UNSUSTAINABLE

http://theeconomiccollapseblog.com/

When it comes to explaining the problems with our economy, one of the hardest things to do is to get people to understand that we are living in an economic fantasy world that is completely and totally unsustainable.  As a nation we consume far more than we produce, we spend far more than we bring in, our debt is growing much faster than our GDP is, our entitlement programs are growing at an exponential rate, our retirement system is a Ponzi scheme and the Federal Reserve is printing money as if there is no tomorrow in a desperate attempt to paper over all of our problems.  But we have all grown so accustomed to the debt-fueled prosperity that we have been enjoying for so many decades that it actually feels “real” to most of us.  Unfortunately, history has shown us that it is simply not possible to grow your debt faster than your economy indefinitely.  At some point your consumption will drop back to a level more equal to your production.    Sometimes that adjustment can be gradual, but other times it can be extremely painful.  In our case, we have been living way above our means for so long that it would take a major economic miracle just to keep our adjustment to an “exceedingly painful” level.  We are living in the largest debt-fueled prosperity bubble in the history of the world, and our unsustainable economy is going to crash and burn at some point.  Hopefully it will be later rather than sooner, but a crash is most definitely coming.

The following are some of the reasons why the bubble economy that we are living in right now is unsustainable….

The Trade Deficit

Most Americans do not really understand what a “trade deficit” is, but it is at the very core of our economic problems.

Basically, we buy far more stuff from the rest of the world than they buy from us.  We send them huge piles of our money, and they send us oil that we burn in our cars and cheap plastic products that we end up throwing away.  We keep doing this month after month after month, and this is systematically making us poorer as a nation.

In 2012, it is being projected that our trade deficit will fall somewhere between 500 billion and 600 billion dollars.

At this point, the United States has a trade imbalance that is more than 7 times larger than any other nation on earth has.

Overall, the United States has run a trade deficit of more than 8 trillion dollars with the rest of the world since 1975.

Instead of going out of the country, those 8 trillion dollars could have gone to U.S. businesses and U.S. workers.  In turn, taxes would have been paid on those 8 trillion dollars and our debt problems would not be nearly as dramatic today.

But we didn’t do that.

We chose to allow tens of thousands of businesses, millions of jobs and trillions of dollars of our national wealth to leave the country.

Stupid move, eh?

But both political parties have been endlessly pushing the “free trade” agenda.  They have both promised that it would bring us tremendous prosperity.

Well, just take a look at our formerly great manufacturing cities today.  Do they look prosperous to you?

It turns out that Ross Perot was right when he warned about the “giant sucking sound” that would happen if NAFTA was implemented.

When NAFTA was pushed through Congress in 1993, the United States had a trade surplus with Mexico of 1.6 billion dollars.  By 2010, we had a trade deficit with Mexico of 61.6 billion dollars.

That didn’t work out so well, did it?

What about opening up trade with China?

Back in 1985, our trade deficit with China was approximately 6 million dollars (million with a little “m”) for the entire year.

In 2011, our trade deficit with China was 295.4 billion dollars.  That was the largest trade deficit that one nation has had with another nation in the history of the world.

Our trade with China is tremendously unbalanced.  Today, U.S. consumers spend approximately 4 dollars on goods and services from China for every one dollar that Chinese consumers spend on goods and services from the United States.

This is a huge reason why shiny new factories are going up all over China, and our blue collar cities are turning into rotting war zones filled with unemployed people.

If you can believe it, the United States has actually lost more than 56,000 manufacturing facilities since 2001.

Until we fix the trade deficit we are going to continue bleeding factories, jobs and national wealth at an astounding pace.

The National Debt

It is being projected that U.S. GDP will grow at a rate of about 2.2 percent this year.

The problem is that our federal budget deficit will be somewhere around 7 percent of GDP this year.

With each passing day we are losing ground.  No other nation on earth has been able to run up debt like this indefinitely, and neither will we.

Does this chart look like a healthy situation to you?….

Sadly, all of this government debt is just about the only thing holding up our economy at this point.  Since Barack Obama has been in the White House, the U.S. national debt has increased by about 5.5 trillion dollars.  Of course the Obama administration has spent a lot of that money on incredibly stupid stuff, but it still gets into the pockets of average Americans that in turn spend it on food, gas, mortgage payments, etc.

If we could go back in time and suck that 5.5 trillion dollars of extra spending out of the economy we would be in a horrible economic depression right now.

But that does not mean that borrowing and spending all of that money was the right thing to do.  We have stolen it from our children and our grandchildren and we are going to stick them with the bill.

That is highly immoral and it is a national disgrace.

Yet we continue to do it because we can’t help ourselves.  We are ruining the future of this nation in order to make the present more pleasant for ourselves.

As I noted yesterday, the U.S. national debt jumped more on the very first day of fiscal year 2013 than it did from 1776 to 1941 combined.

We are completely addicted to debt and we can’t stop.  We know that we are destroying the future of the United States but we have absolutely no self-discipline.

By the end of Barack Obama’s first term, the U.S. government will have accumulated more debt during those four years than it did from the time that George Washington took office to the time that George W. Bush took office.

But most Americans seem fine with that.

Most Americans don’t even really know why this is happening, and most don’t really seem too concerned about finding out.  They just want the good times to continue to roll.

Sadly, the truth is that our financial system is designed to create government debt.  It is one of the primary purposes of the Federal Reserve system.

At this point, the U.S. national debt is more than 5000 times larger than it was when the Federal Reserve was first created.

So I guess you could say that the Federal Reserve is doing a good job of what it was designed to do.

And until we change the system things are going to continue to get worse until the entire system collapses.

Boston University economist Laurence Kotlikoff is warning that we are basically facing financial armageddon if something is not done.  Kotlikoff speaks of a “fiscal gap” which he defines as “the present value difference between projected future spending and revenue”.  His calculations have led him to the conclusion that the United States is facing a fiscal gap of 222 trillion dollars in the years ahead.

Where in the world are we going to get an extra 222 trillion dollars?

Entitlements

Every society needs a safety net, but we are rapidly getting to the point where there are going to be more Americans on the safety net than there are Americans supporting it.

Back in 1983, less than 30 percent of all Americans lived in a home where at least one person received financial assistance from the federal government.

Today, that number is up to an all-time record of 49 percent.

Many people don’t believe me when I tell them that more than 100 million Americans are enrolled in at least one welfare program run by the federal government right now, and that does not even count Social Security or Medicare.

But it is actually true.

Overall, there are nearly 80 different “means-tested welfare programs” that the federal government is currently running.

But of course the biggest financial burdens are Medicaid, Medicare and Social Security.  All three are on course to become completely and totally unsustainable.

For example, the number of Americans on Medicaid soared from 34 million in 2000 to 54 million in 2011, and it is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

Ouch.

Well, what about Medicare?

Sadly, Medicare is even more frightening.

As I wrote recently, it is being projected that the number of Americans on Medicare will grow from 50.7 million in 2012 to 73.2 million in 2025.

How in the world can we afford that?

At this point, Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years.  That comes to approximately $328,404 for each and every household in the United States.

Are you ready to contribute your share?

Social Security is in really bad shape as well.

At the moment, approximately 56 million Americans are collecting Social Security benefits.

By 2035, that number is projected to soar to a whopping 91 million.

Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years.

Where are we going to get that money?

Total Debt

Of course the national debt is not out only debt problem.  All over the country there are state and local governments that are on the verge of insolvency.  Corporations and financial institutions are leveraged like crazy.  And of course consumers have absolutely gorged on debt over the past several decades.

As a result, we are drowning in debt from sea to shining sea.

The good news is that our GDP is more than 12 times larger than it was 40 years ago.

The bad news is that the total amount of debt in our country is more than 30 times larger than it was 40 years ago….

Obviously this is something that cannot go on forever.

We simply cannot keep accumulating debt much faster than our economy is growing.

Nobody knows exactly when the “adjustment” is coming, but it most definitely will arrive at some point.

Money Printing

The Federal Reserve has attempted to monetize many of our economic problems by printing gigantic mountains of money in recent years.

The Federal Reserve is at the very heart of our economic problems, but most Americans don’t realize this.  It was the Federal Reserve that created the conditions for the housing bubble, and it was the Federal Reserve that badly mismanaged the response when that bubble burst.  The Federal Reserve decides how much money will be printed and what our interest rates will be.  The Federal Reserve lends out trillions of dollars to the banks that they like, and other banks they let die.  The Federal Reserve picks winners and losers in our economy, and most of the time that means good things for the big Wall Street banks and bad things for the rest of us.

In a desperate attempt to keep our unsustainable financial system from collapsing, the Federal Reserve has decided to start printing unprecedented amounts of money.  Just look at what this has done to the monetary base….

And QE3 really hasn’t even started to kick in yet.

So how bad will that chart look after QE3 has been adding another 40 billion dollars a month to the financial system for a while?

You know, the Weimar Republic was absolutely convinced that they were doing the right thing by printing lots of money too.

But in the end that didn’t work out very well for them at all….

So should we really be celebrating the fact that the Federal Reserve is going down the same path that the Weimar Republic did?

Demonocracy has released a great new graphic that does a wonderful job of illustrating just how huge the amounts of money involved in QE3 are going to be.  If you have not seen it yet, you can view the graphic right here.

The rest of the world is watching the games that we are playing with our currency.  Right now we think that we are getting away with it, but what we are doing is not sustainable.  At some point the rest of the world will totally lose confidence in the U.S. dollar, and when that happens the U.S. dollar could easily lose its status as the primary reserve currency of the world.

If that were to happen the coming shift in our standard of living would happen much more rapidly.

Please share this article with as many people as you can.  We need to wake people up and get them to understand how incredibly vulnerable our financial system really is.  We are on a path that is unsustainable any way that you want to look at it, and if something dramatic is not done our economy is going to experience an unprecedented collapse.

So what happens if nothing is done and everything crashes all around us?

Well, I hope that you are prepared because it isn’t going to be pretty.

Will The Election Results Cause

Massive Riots To Erupt All Over

America?

Will the most divisive campaign in modern American history culminate in massive riots in our major cities?  Right now, supporters of Barack Obama and supporters of Mitt Romney are both pinning all of their hopes on a victory on November 6th.  The race for the presidency is extremely tight, and obviously the side that loses is going to be extremely disappointed when the election results are finalized.  But could this actually lead to violence?  Could we actually see rioting in communities all over America?  Well, the conditions are certainly ripe for it.  A whole host of surveys over the past few years have shown that Americans are very angry and very frustrated right now.  In fact, a Pew Research Center poll from late last year found that 86 percent of all Americans are either angry or frustrated with the federal government.  We have seen this frustration manifest in protest movements such as the Tea Party and Occupy Wall Street, but right now things are fairly calm as liberals and conservatives both look forward to November 6th.  Many Republicans started the countdown to the next election literally the day after John McCain lost back in 2008.  All of their hopes of getting Obama out of the White House are riding on a Romney victory.  For many Democrats, Barack Obama is a “once in a generation” icon.  Just the thought of Mitt Romney replacing Obama in the White House is enough to push many of them to the brink of insanity.  In recent years we have seen horrible rioting erupt in cities after major sports championship games.  How much worse could the rioting potentially be if this bitterly contested election is decided by a very narrow margin – especially if there are allegations that the election is “stolen”?

The election is nearly four weeks away, and many Obama supporters are already threatening to riot if Obama loses.  The following are some very disturbing messages that were posted on Twitter recently that have been reposted on Twitchy.com….

“If Romney wins I’m Starting a Riot….Who’s WIT ME???”

“I Hope The USA Is Well Aware That If In The Event This Character Romney Wins The Election, The People Will Start A Country Wide Riot! #Power”

“If Romney is elected president, its gon be a riot its gon be a riot.”

“If ROMNEY GETS IN THE WHITE HOUSE …U MIGHT AS WELL KILL ME NOW …..CAUSE ITS GONNA BE A ************ RIOT !!!”

“If Romney became President and took away welfare Downtown Cincinnati would become a riot”

“If Romney takes away food stamps 2 Chainzz in this bit IMMA START A RIOT”

“If Romney wins. (which i highly doubt) THERE WILL BE A RIOT—”

The following are a few more tweets that I found which threaten a potential riot if Obama loses the election….

From @joecools_world….

“Need 2 come up wit a game plan if Romney win…. Riot all thru Newark”

From @killacate….

“I swear on everything I love if Romney wins ima riot. I don’t even care if its just me.”

Romney supporters are not really threatening to riot, but many of them are proclaiming that they may leave the country if Obama wins.  Here are some examples….

From @BrentskiTheBoss….

“If Obama gets reelected I may leave the country”

From @AbbieFickes….

“im sorry but if obama were to win again, i might as well leave the country and live in zimbabwe”

This presidential campaign has been getting increasingly heated, and individuals on both sides have been committing some despicable acts.

For example, in a previous article I mentioned that some Romney campaign signs down in Virgina have been smeared with excrement.

Over in Ohio, a huge pile of manure was dumped right in front of Warren County Democratic headquarters early on Tuesday morning….

Volunteers at the Warren County Democratic headquarters, just north of Cincinnati, were shocked and disappointed by a political prank unloaded on them early Tuesday morning – someone dumped a pile of horse manure in the parking lot of the headquarters building on US 42, just north of Lebanon.

It appears that both sides have resorted to literally slinging crap around.

There is so much hate in America today, and this campaign is bringing a lot of it to the surface.  It is even being reported that a bus driver told a 12-year-old boy that he should have been aborted because his family has a Romney campaign sign in their yard….

Belling read a letter from the 12-year-old boy’s mother, detailing the alleged abusive behavior by the bus driver.

Apparently, the Romney-Ryan yard sign bugs the bus driver and she’s been harassing the boy, making rude comments to him related to politics.

When the driver engaged the 12-year-old boy in a political conservation, he responded by saying that Obama is pro-abortion.

The bus driver allegedly said to the child, “Maybe your mom should have chosen abortion for you.”

How sick is that?

You can strongly disagree with someone without being mean and without being hateful.

Right now, the United States is a bubbling cauldron of frustration and anger that could be set off at any moment.  This election could potentially be a “trigger point” which could end up unleashing a lot of that anger and frustration.

Already, there have been allegations that the Republicans have been committing voter registration fraud.  Democrats are furious about this.

Evidence has also emerged that Democrats have been willing to assist voters in registering to vote in two different states.  The following is from a recent article by Mac Slavo….

When undercover reporters visited various locations across the country they received the same response from Obama campaign staffers – that it’s basically okay to vote multiple times if you happen to be registered in two or more states.

In Houston, Texas, for example, the Project Veritas reporter made her intentions known, and rather than being rebuffed for her planned illegal activity, she was provided assistance with obtaining the proper forms to be registered in two states and was told to say “I don’t know” if the double-voting ever became an issue.

Similar situations unfolded at other DNC funded community organizations.

It appears quite probable that whichever side loses this election will accuse the other side of stealing the election.

And if millions of Americans feel that the election has been stolen from them, that will make it much more likely that we will see rioting.

Keep your ears open for phrases such as “voter fraud” and “election fraud” following this election.  People are so angry already that even allegations that someone stole the election could be enough to set the streets of America on fire.

As always, let us hope for the best, but let us also prepare for the worst.

Ratcheting Up The Crisis In Europe

Ratcheting Up The Crisis In Europe

“Crisis in the eurozone” stories are getting boring and this is one two year old soap opera the world would just as soon see disappear. Nevertheless it grinds on; yesterday the German finance minister said it could go on for another two years.  Unfortunately, he’s right.

But while the news from Europe is complicated and inconclusive (they are always threatening to jump off the bridge but so far, no one has), this is still a story one has to watch. And after months and years when the crisis was mostly in the hands of elites — heads of government, central bankers and the like — in the last couple of weeks the public has been getting involved, and that makes the crisis more dangerous and harder to solve.

The Greek and French elections were the public’s first real chance to get a word in on how Europe is handling the crisis, and the word from the public is one of those expletives that we don’t allow at Via Meadia. The public not only doesn’t approve of the way Europe is handling its problems; it wants to hang, draw and quarter the people responsible. The Greeks and the French both voted for candidates who wanted to rip up the fragile agreements already negotiated; as more European countries hold elections we must expect that more European politicians will come to power with mandates to change Europe’s direction. Many like the new French President François Hollande will try to manage this artfully, but the Greeks are unlikely to be the only bull in Europe’s china shop by the time this is done.

The other way that public sentiment threatens to blow Europe sky high is swifter, less predictable and far more dramatic. As Greek savers and investors read the writing on the wall, they are pulling their money out of Greek banks. They know that if Greece pulls out of the euro, the government will do something funny to the banks; they aren’t sure what (nobody really is), but there is a strong suspicion that any money left in Greek bank vaults will be converted from euros to drachmas at the stroke of a pen (more likely, by the tap of a keyboard), and those drachmas will soon be worth much, much less than a euro.

Better to have your money in Swiss or German bank than in a Greek one, every sentient vertebrate in Greece has to understand; as a result, hundreds of billions of euros have been moving out of the Greek banking system. At one point last week, television networks were sending camera crews out onto the streets to look for panicky customers standing in line at ATMs or at bank counters; but then they realized that these days you can do it all on the net. We have entered the age of the invisible bank run and are waiting for the first virtual panic.

An invisible bank run is a hard thing to watch; not only is it less telegenic than the old-fashioned kind, one relies on numbers from official government agencies for statistics. How much money left the banking system today? How many banks need emergency liquidity to meet the tide of withdrawals? In the old days, reporters could and did watch lines form outside the banks and watch the armored trucks arrive with cash. These days it is happening anonymously and you only know what they tell you.

They are very unlikely to tell you the truth. Officials lie like rats in times of financial panic; they do it out of a sense of duty. They will insist that a given country will never leave the euro until the moment that it does; they will say that a deposit freeze is unthinkable until they announce that they’ve done it; they will tell you a bank is rock solid until the moment they padlock its doors. This is all for your own good, of course. They don’t want you to panic — and they want to make sure that your money is trapped when they take it away or turn it from gold into straw.

Bank runs, even virtual ones, are the method by which public fear can blow up the eurozone. A bank run, as hundreds of thousands of depositors decide to pull their money out of a bank or a banking system at the same time, is the financial equivalent of a dam break. Banks, even very well run ones, never have all the money that their customers have deposited in their vaults. They lend that money out to other people, and because they charge borrowers a higher rate on their loans than they pay savers on their deposits, they make money.

At least they make money as long as enough of the borrowers can pay back their loans.

When borrowers can’t repay their loans, the bank sooner or later has to “write down” the value of those loans. In bad economic times, when borrowers are going bankrupt and the collateral on their loans loses value, banks can make huge losses. This is how Ireland lost its shirt; the banking system collapsed as the Irish real estate bubble burst, making building contractors and home owners bankrupt all over Ireland, and making the real estate that served as collateral for their loans almost worthless at the same time. The government — to prevent a panic and bank runs — guaranteed the deposits held by Irish banks, and ended up assuming such a massive debt that the Republic of Ireland needed a bailout from Europe.

Since then, European bailouts have been the safety net for all the countries in the eurozone. When investors worry that countries like Spain, Portugal and Italy will have a Greek style financial meltdown and the interest rates on their bonds rise to reflect that risk, the ECB steps in to buy their bonds and the panic goes away — for a while. More, when individual banks are having trouble, the ECB has made huge amounts of money at extremely low interest rates available to them. Spanish banks, for example, can borrow cheap money from the ECB in order to buy Spanish government bonds at high interest rates. They pay one percent interest to the ECB and collect four percent interest from the Spanish government, and use the profit of three percent to offset their losses on their loans to private companies and consumers who are going belly up in Spain’s savage recession.

The success of this little merry-go-round is why Europe calmed down last December. The ECB in effect prints money which it gives to busted banks. The busted banks lend the money to insolvent governments at artificially low rates (but at rates that still allow the banks to make a profit). It was a neat little trick that kept the crisis quiet without forcing the Germans to admit openly that the ECB was in effect using German resources to bail out the rest of the zone.

Bank runs, even virtual bank runs, would blow this fragile arrangements to bits. As the prospect of Greece leaving the euro becomes more likely, savers in Portugal, Spain and Italy have to start wondering if their countries, too, will have to jump ship. Sophisticated investors have been moving their money out of those countries for some time; things may soon reach a pass in which ordinary, unsophisticated investors start to do the same thing. Again, why have your money in some gut-shot Spanish bank when you can transfer it to a German, Austrian or Dutch bank with a mouse click? And if you are worried about the whole eurozone, or that devious financial trolls will find a way to convert all deposits held by Spanish citizens in European banks to pesos when and if the change comes, put the money in Switzerland, the UK or even the US.

If a few thousands or a few tens of thousands do this in Portugal, Italy and Spain, no problem. But if hundreds of thousands or millions of people shift their money out of their home banking systems, then you have a new and very grave bank crisis that blows the December fix out of the water. Either the ECB would start creating trillions of euros to bail out the Club Med banks (and Club Med under some circumstances could stretch as far north as France), or banking systems start exploding like firecrackers across the southern tier. At the same time you would have a new panic on the bond markets; nobody is going to want to own Spanish or Italian debt under those circumstances.

This is one of those cases when what is good for one is bad for all. A good financial investor would probably be suggesting to anybody in Spain or even Italy that it is a good idea to separate the fate of your savings from the fate of your country’s currency or its banking system. The trivial costs of moving money into a safer banking system are well worth the protection you gain.

But if everyone gets and acts on this sound and prudent advice, the whole banking system and perhaps the whole eurozone comes down.

Europe’s stability now rests on the sloth and stupidity of European savers. As long as millions of retail investors think their money is OK, it will be sort of OK for a while. But while governments can and will lie, and while soothing official pronouncements can be printed up almost as fast as the ECB produces euros out of thin air, sooner or later people may start to put two and two together.

Voters are not nearly as scary as depositors right now from the standpoint of Europe. Elections in Greece can’t cause as much trouble as bank runs in Barcelona or Turin.

This isn’t an abstract or imaginary worry; on Thursday rumors of a bank run in Spain led to a fall of thirty percent in the value of Spanish bank shares; the government denied any run was taking place, and, this time, people believed the denials. The panic stopped and the next day the bank shares recovered most of the loss.

Bank panics are contagious; everyone who read last week’s stories about the banking problems in Greece and the rumored problems in Spain is suddenly aware that the safety of their money is something that they need to think about. Invisible runs can spread and spread fast; this is the specter at the feast of the G-8 leaders as they meet at Camp David.

Emergency Items: What Will Disappear First

Emergency Items:

What Will Disappear First

 

Tess Pennington
Ready Nutrition

 

 

 

 

http://readynutrition.com/resources/emergency-items-what-will-disappear-first_11112009/

Do you ever wonder if a major emergency situation occurred what would disappear first?  Due to the overwhelming nature of prepping for a emergency situation, many do not know where to even began, let alone think of emergency situations they would need to prepare for.  Having a ready supply of food, water and batteries are a good start, but not enough.  There are many more items to have on hand besides beans, band aids and bullets.

 

When planning for an emergency, especially a sudden and long term emergency, think about the worst situation imaginable.  For those that need some help – think of mass chaos of people running into grocery stores to get as much food and supplies as possible, gas lines that run out into the street, highways at a virtual stand still, banks not giving out money, looting, fires, the health of the elderly deteriorating due to not being able to get needed medicines, babies crying because that have no formula to drink.  It’s not a pretty picture when you allow yourself to imagine it.  Having supplies on hand can put a person way ahead of the game.  While many who are unprepared for such a grim reality will be battling the lines at the grocery stores, those that have prepared accordingly could be packing their items up and headed for hills before many have even attempted to.

 

This author came across some advice from someone who has experienced a long term emergency first hand.  This advice could help a person prepare not only for their well being, but also mentally prepare them for getting through the nightmare of a long term emergency.

 

Advice From a Sarajevo War Survivor:

Experiencing horrible things that can happen in a war – death of parents and friends, hunger and malnutrition, endless freezing cold, fear, sniper attacks.

1. Stockpiling helps. But you never no how long trouble will last, so locate near renewable food sources.
2. Living near a well with a manual pump is like being in Eden.
3. After awhile, even gold can lose its luster.  But there is no luxury in war quite like toilet paper.  Its surplus value is greater than gold’s.
4. If you had to go without one utility, lose electricity – it’s the easiest to do without (unless you’re in a very nice climate with no need for heat.)
5. Canned foods are awesome, especially if their contents are tasty without heating.  One of the best things to stockpile is canned gravy – it makes a lot of the dry unappetizing things you find to eat in war somewhat edible.  Only needs enough heat to “warm”, not to cook. It’s cheap too, especially if you buy it in bulk.
6. Bring some books – escapist ones like romance or mysteries become more valuable as the war continues.  Sure, it’s great to have a lot of survival guides, but you’ll figure most of that out on your own anyway – trust me, you’ll have a lot of time on your hands.
7. The feeling that you’re human can fade pretty fast.  I can’t tell you how many people I knew who would have traded a much needed meal for just a little bit of toothpaste, rouge, soap or cologne.  Not much point in fighting if you have to lose your humanity.  These things are morale-builders like nothing else.
8. Slow burning candles and matches, matches, matches

 

Emergency Items That Disappear First

 

1. Generators (Good ones cost dearly. Gas storage, risky. Noisy…target of
thieves; maintenance etc.)
2. Water Filters/Purifiers
3. Portable Toilets
4. Seasoned Firewood. Wood takes about 6 – 12 months to become dried, for home
uses.
5. Lamp Oil, Wicks, Lamps (First Choice: Buy CLEAR oil. If scarce, stockpile
ANY!)
6. Coleman Fuel. Impossible to stockpile too much.
7. Guns, Ammunition, Pepper Spray, Knives, Clubs, Bats & Slingshots.
8. Hand-can openers, & hand egg beaters, whisks.
9. Honey/Syrups/white, brown sugar
10. Rice – Beans – Wheat
11. Vegetable Oil (for cooking) Without it food burns/must be boiled etc.,)
12. Charcoal, Lighter Fluid (Will become scarce suddenly)
13. Water Containers (Urgent Item to obtain.) Any size. Small: HARD CLEAR
PLASTIC ONLY – note – food grade if for drinking.
16. Propane Cylinders (Urgent: Definite shortages will occur.
17. Survival Guide Book.
18. Mantles: Aladdin, Coleman, etc. (Without this item, longer-term lighting is
difficult.)
19. Baby Supplies: Diapers/formula. ointments/aspirin, etc.
20. Washboards, Mop Bucket w/wringer (for Laundry)
21. Cook stoves (Propane, Coleman & Kerosene)
22. Vitamins
23. Propane Cylinder Handle-Holder (Urgent: Small canister use is dangerous
without this item)
24. Feminine Hygiene/Haircare/Skin products.
25. Thermal underwear (Tops & Bottoms)
26. Bow saws, axes and hatchets, Wedges (also, honing oil)
27. Aluminum Foil Reg. & Heavy Duty (Great Cooking and Barter Item)
28. Gasoline Containers (Plastic & Metal)
29. Garbage Bags (Impossible To Have Too Many).
30. Toilet Paper, Kleenex, Paper Towels
31. Milk – Powdered & Condensed (Shake Liquid every 3 to 4 months)
32. Garden Seeds (Non-Hybrid) (A MUST)
33. Clothes pins/line/hangers (A MUST)
34. Coleman’s Pump Repair Kit
35. Tuna Fish (in oil)
36. Fire Extinguishers (or..large box of Baking Soda in every room)
37. First aid kits
38. Batteries (all sizes…buy furthest-out for Expiration Dates)
39. Garlic, spices & vinegar, baking supplies
40. Big Dogs (and plenty of dog food)
41. Flour, yeast & salt
42. Matches. {“Strike Anywhere” preferred.) Boxed, wooden matches will go first
43. Writing paper/pads/pencils, solar calculators
44. Insulated ice chests (good for keeping items from freezing in Wintertime.)
45. Work boots, belts, Levis & durable shirts
46. Flashlights/LIGHTSTICKS & torches, “No. 76 Dietz” Lanterns
47. Journals, Diaries & Scrapbooks (jot down ideas, feelings, experience;
Historic Times)
48. Garbage cans Plastic (great for storage, water, transporting – if with
wheels)
49. Men’s Hygiene: Shampoo, Toothbrush/paste, Mouthwash/floss, nail clippers,
etc
50. Cast iron cookware (sturdy, efficient)
51. Fishing supplies/tools
52. Mosquito coils/repellent, sprays/creams
53. Duct Tape
54. Tarps/stakes/twine/nails/rope/spikes
55. Candles
56. Laundry Detergent (liquid)
57. Backpacks, Duffel Bags
58. Garden tools & supplies
59. Scissors, fabrics & sewing supplies
60. Canned Fruits, Veggies, Soups, stews, etc.
61. Bleach (plain, NOT scented: 4 to 6% sodium hypochlorite)
62. Canning supplies, (Jars/lids/wax)
63. Knives & Sharpening tools: files, stones, steel
64. Bicycles…Tires/tubes/pumps/chains, etc
65. Sleeping Bags & blankets/pillows/mats
66. Carbon Monoxide Alarm (battery powered)
67. Board Games, Cards, Dice
68. d-con Rat poison, MOUSE PRUFE II, Roach Killer
69. Mousetraps, Ant traps & cockroach magnets
70. Paper plates/cups/utensils (stock up, folks)
71. Baby wipes, oils, waterless & Antibacterial soap (saves a lot of water)
72. Rain gear, rubberized boots, etc.
73. Shaving supplies (razors & creams, talc, after shave)
74. Hand pumps & siphons (for water and for fuels)
75. Soy Sauce, vinegar, bullions/gravy/soup base
76. Reading glasses
77. Chocolate/Cocoa/Tang/Punch (water enhancers)
78. “Survival-in-a-Can”
79. Woolen clothing, scarves/ear-muffs/mittens
80. Boy Scout Handbook, / also Leaders Catalog
81. Roll-on Window Insulation Kit (MANCO)
82. Graham crackers, saltines, pretzels, Trail mix/Jerky
83. Popcorn, Peanut Butter, Nuts
84. Socks, Underwear, T-shirts, etc. (extras)
85. Lumber (all types)
86. Wagons & carts (for transport to and from)
87. Cots & Inflatable mattress’s
88. Gloves: Work/warming/gardening, etc.
89. Lantern Hangers
90. Screen Patches, glue, nails, screws, nuts & bolts
91. Teas
92. Coffee
93. Cigarettes
94. Wine/Liquors (for bribes, medicinal, etc,)
95. Paraffin wax
96. Glue, nails, nuts, bolts, screws, etc.
97. Chewing gum/candies
98. Atomizers (for cooling/bathing)
99. Hats & cotton neckerchiefs
100. Goats/chickens

The Government Parasite- For Us To Survive, The West Must Die!

The Hard Working American vs.

The Government Parasite

http://theeconomiccollapseblog.com

Which lifestyle choice produces better results – being a hard working American or being a government parasite?  Actually, when you look at the cold, hard numbers they may just surprise you.  In America today, we deeply penalize hard work and we greatly reward government dependence.  If you live in a very liberal area of the country and you know how to game the system, it is entirely possible to live a comfortable existence without ever working too much at all.  In fact, there are some Americans that have been living off of “government benefits” for decades.  Many of these people actually plan their lives around doing exactly what they need to do to qualify for as many benefits as possible.  America is rapidly turning into a European-style socialist welfare state and it is destroying our nation socially and financially.  Ever since the “war on poverty” began our debt has absolutely exploded and yet now there are more poor people in this country than ever before.  Obviously something is not working.

Now don’t get me wrong.  I deeply believe in having compassion for those that are going through tough times and having a safety net for those that cannot take care of themselves.  We should not have a single person in this nation going without food or sleeping in the streets.

But in America today it is absolutely ridiculous how many people are climbing aboard the “safety net”.  At this point, an astounding 49 percent of all Americans live in a home that receives some form of government benefits.

So who pays for all of this?

The people that drag themselves out of bed and go to work each day pay for it all.

For a few moments, let’s examine how the lifestyle of a typical hard working American compares to the lifestyle of a government parasite.

In America today, the median yearly household income is somewhere around $50,000.  About half of all American households make more than that and about half of all American households make less than that.  When you break it down, it comes to about $4000 a month.

So how far does $4000 go in America today?

Unfortunately, it doesn’t go very far at all.

First of all, a hard working American family will need some place to live.  Unfortunately, the vast majority of the decent jobs are near the big cities, and it is more expensive to live near the big cities.  Let’s assume that an average family of four will spend about $1000 a month on rent or on a mortgage payment.

The government parasite, on the other hand, has a whole host of federal, state and local housing programs to take advantage of.  During the recent economic downturn, more Americans than ever have been turning to the government for help with housing costs.  For example, federal housing assistance outlays increased by a whopping 42 percent between 2006 and 2010.

Once you have a place to live, you have to provide power and heat for it.  For the average hard working American, this is going to probably average about $300 a month, although this can vary greatly depending on where you live.

For the government parasite, there are once again a whole host of government programs to help with this.  For example, LIHEAP (Low Income Home Energy Assistance Program) assists low income households in paying their home heating bills.

Most average hard working Americans are also going to need phone and Internet service.  Let’s assume that the hard working family of four in our example is extremely thrifty and only spends $100 a month for these services.

For the government parasite, cell phone service is not a problem.  As I have written about previously, those that “qualify” can receive a free cell phone and free cell phone minutes every single month from the federal government.  In addition, in some areas of the nation low income families can qualify for deeply subsidized home Internet service.

In order to earn money, our hard working family is going to need to get to work.  In most households, both parents have decided to work these days so both of them will need cars.  Let’s assume that the family is very thrifty and that both cars were purchased used and that the car payments only total about $400 a month.

The hard working family will also need auto insurance for the two vehicles.  Let’s assume that both parents have a great driving record and that they only pay a total of about $100 a month for car insurance.

The cars will also need to be filled up with gasoline.  The average U. S. household spent $4155 on gasoline during 2011, but let’s assume that our family is very, very careful and that they only spend about $300 on gas each month.

So what about the government parasite?  Well, the government parasite does not need to go to work, so this expense can potentially be eliminated entirely.  But since most other things are paid for by the government or are deeply subsidized, in many instances government parasites are actually able to afford very nice vehicles.

In addition, a new bill (The Low-Income Gasoline Assistance Program Act) has been introduced in Congress that would give “qualifying” households money to help pay for gasoline….

Low-Income Gasoline Assistance Program Act – Directs the Secretary of Health and Human Services to make grants to states to establish emergency assistance programs to pay eligible households for the purchase of gasoline.

A hard working American family is also going to need health insurance.  Well, we all know how expensive health insurance has become.  In fact, health insurance costs have risen by 23 percent since Barack Obama became president.  But let’s assume that our hard working family has somehow been able to find an amazing deal where they only pay $500 a month for health insurance for a family of four.

For the government parasite, health insurance is not needed.  If there is an emergency, the government parasite can just go get free medical care at any emergency room.

And of course there is always Medicaid.  Back in 1965, only one out of every 50 Americans was on Medicaid.  Today, one out of every 6 Americans is on Medicaid, and things are about to get a whole lot worse.  It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

So what about food?

Everyone has to eat, right?

Well, the hard working family in our example is faced with an environment where food prices are constantly rising but paychecks are not keeping up.  Let’s assume that the hard working family in our example clips coupons and cuts corners any way that it can and only spends about $50 for each member of the family on food and supplies each week.  That comes to a total of $800 a month for the entire family.

So what about the government parasite?

Government parasites need to eat too.

Well, that is where food stamps come in.  Right now, there are more than 46 million Americans on food stamps.  Since Barack Obama became president, the number of Americans on food stamps has increased by 14 million.  Food stamps have become so popular that rappers are even making rap videos about using food stamp cards.

Okay, so after all of this where do we stand?

Well, the average hard working family so far has spent $3500 out of the $4000 that they have to spend for the month.

We still need to find money for clothing, for paying off credit card debt, for paying off student loan debt, for dining out, for entertainment, for medications, for pets, for hobbies, for life insurance, for vacations, for car repairs and maintenance, for child care, for gifts and for retirement savings.

But wait.

There is actually no money left at all because we have forgotten one of the biggest expenses of all.

Taxes.

When you total up all federal, state and property taxes, our average hard working family is going to pay at least $1000 a month in taxes.

So that puts our average hard working family in the hole every single month.

Meanwhile, the government parasite does not pay any taxes because he or she does not earn enough money to be taxed.

Are you starting to get the picture?

In many ways, life can be so much easier when you are constantly taking from the government instead of constantly giving to the government.

New Jersey Governor Chris Christie recently put it this way….

“We’ll have a bunch of people sitting on a couch waiting for their next government check”

Once again, I am not dumping on those that have been through all kinds of nightmares because of this economy.  As I have written about so frequently, the U.S. economy is simply not producing enough jobs for everyone anymore, and this is creating major problems.

Just about everyone needs a helping hand at some point, and we should always be compassionate to those that are in need.

However, there is also a growing number of Americans that are content to simply give up and live off of the government, and that is fundamentally wrong.

It is not the job of the U.S. government to take care of you from the cradle to the grave.  What the U.S. government is supposed to do is to make sure that we have a well functioning economy that operates in an environment where hard working individuals and small businesses can thrive, and sadly the U.S. government has failed miserably in that regard.

We desperately need the U.S. economy to be fixed, but I wouldn’t hold my breath waiting for that to happen.

As economic conditions get even worse in this country, millions more Americans are going to turn to the government for assistance and at some point the safety net is going to break.

What is our country going to look like when that happens?

19 Signs Of Very Serious

Economic Trouble On The Horizon

Most Americans have no idea how much economic trouble is heading our way.  Most of them just assume that everything will eventually “return to normal” just like it always has before and that those running our economy “know what they are doing” and that we should trust them to do their jobs.  Unfortunately, these beliefs are being reinforced by the bubble of false hope that we are experiencing right now.  For example, it is being reported that weekly unemployment claims in the United States have fallen to a four-year low.  That is a very good thing.  Let us hope that unemployment claims go even lower and that the current period of stability lasts for as long as possible.  We should enjoy these last fleeing moments of tremendous prosperity for as long as we can, because when they are gone they won’t be coming back.  As I noted the other day, all of this false prosperity in the United States has been financed by the 15 trillion dollar party that we have been enjoying.  We are adding about 150 million dollars to our debt every single hour so that we can continue to enjoy an inflated standard of living.  Unfortunately, nobody in the history of the world has ever been able to keep a debt spiral going indefinitely, and our debt bubble will burst eventually as well.

Sadly, when you attempt to end (or even slow down) a debt spiral the consequences can be extremely painful.  Just look at what is happening in Greece.  Several waves of austerity measures have been implemented, the Greek economy has been plunged into a full-blown depression and Greek debt is still going up.

The rest of the nations of the eurozone are also now implementing austerity measures, and most of them are also starting to fall into recession.  The economic pain in Europe is just beginning and it will go on for quite a long time.

And eventually the United States is going to join the pain.  Right now the U.S. government can still borrow trillions of dollars at super low interest rates thanks to games being played by the Federal Reserve.  But it is simply not possible for this Ponzi scheme to last too much longer.  When it ends, the pain will be extremely great.

And even in the short-term there are some extremely troubling signs for the U.S. economy.

The following are 19 signs of very serious economic trouble on the horizon….

#1 According to one new survey, approximately one-third of all Americans are not paying their bills on time at this point.

#2 The U.S. housing industry is bracing for another huge wave of foreclosures in 2012.  The following is from a recent Reuters article….

“We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010,” said Mark Seifert, executive director of Empowering & Strengthening Ohio’s People (ESOP), a counseling group with 10 offices in Ohio.

#3 The Citigroup Economic Surprise Index, a key indicator watched by many economists, is on the verge of heading into negative territory.

#4 We are supposed to be in the middle of an economic recovery in the United States, but bad news just keeps pouring in from major companies.  For example, Yahoo is firing thousands of workers and Best Buy is closing dozens of stores.

#5 Richard Russell says that the “big money” is starting to quietly exit from the financial markets….

“My guess is that this is the big money that has been holding off as long as it decently can — and then dumping their goods just before the close. I don’t think the big money likes this market, and I think they have been slowly exiting this market, as quietly as they can.”

#6 Goldman Sachs is projecting that the S&P 500 will fall by about 11 percent by the end of 2012.

#7 All over the country, local governments are going into default and we have not even entered the next recession yet.

#8 The U.S. government will add more to the national debt in 2012 than it did from the time that George Washington became president to the time that Ronald Reagan became president.

#9 The Federal Reserve is desperately trying to control interest rates.  The Fed purchased approximately 61 percent of all government debt issued by the U.S. Treasury Department in 2011.  This is the only thing that is keeping interest rates in the United States from soaring dramatically.

#10 German industrial production is falling at a pace that is far faster then expected.

#11 Italy’s debt-to-GDP ratio is now up to 120 percent.

#12 The Spanish government admitted on Tuesday that Spain’s debt-to-GDP ratio will rise by more than 11 percent this year alone.

#13 Yields on Spanish bonds are rising to dangerous levels.

#14 The Spanish government is projecting that the unemployment rate in Spain will exceed 24 percent by the end of the year.

#15 Unemployment in the eurozone as a whole has risen for 10 months in a row and is now at a 15 year high.

#16 In the aftermath of a 77-year-old retiree killing himself in front of the Greek parliament in protest over pension cuts, the economic rioting in Greece has flared back up dramatically.

#17 At this point, Greece is experiencing an economic depression with no end in sight.  Some of the statistics coming out of Greece are really hard to believe.  For example, one port town in Greece now has an unemployment rate of approximately 60 percent.

#18 The IMF is asking the United States to contribute more money for European bailouts.

#19 At this point, even some of our top scientists are projecting economic trouble.  For example, researchers at MIT are projecting a “global economic collapse” by the year 2030 if current trends continue.

But the truth is that we will experience a “global economic collapse” long before 2030 comes rolling around.

Let us hope that we still have at least several more months of economic prosperity in the United States before things really fall apart.

The truth is that the vast majority of Americans need more time to prepare for what is coming.

Sadly, most Americans are not preparing.  Most Americans have blind faith that those in positions of power are going to fix everything and set us on the path to even greater prosperity than ever before.

Unfortunately, all Federal Reserve Chairman Ben Bernanke and Barack Obama have been doing is kicking the can down the road and making our eventual collapse much worse.

As many of us have painfully learned, you can run from debt for a while, but you can’t hide from it forever.  Eventually debt catches up with you, and when it does it can be very cruel.

The 15 trillion dollar party is coming to an end, and the consequences of decades of very foolish decisions are going to fall on this generation.

Read This First Before You Decide That Preppers Are Crazy

Do you believe that preppers are a few cards short of a full deck?  Do you assume that anyone that is “preparing for doomsday” does not have their elevator going all the way to the top floor?  Well, you might want to read this first before you make a final decision that all preppers are crazy.  The information that you are about to read shook me up a bit when I first looked it over.  To be honest, I had no idea how incredibly vulnerable our economic system is to a transportation disruption.  I am continually getting emails and comments on my websites asking “how to prepare” for what is coming, so when I came across this information I knew that I had to share it with all of you.  Hopefully what you are about to read will motivate you to prepare like never before, and hopefully you will share this information with others.

Originally, I was going to write an article about the rising unemployment in Europe today.  Did you know that unemployment in the eurozone is now at a 15 year high?  It has risen for 10 months in a row with no end in sight.

But I have written dozens of articles about the economic crisis in Europe already.  So before starting on that article I started thinking of all the “preparation” questions I have been getting lately and I went over and checked out one of my favorite preparation websites: shtfplan.com.

Well, an article had just been posted over there about a report put out by the American Trucker Associations entitled “When Trucks Stop, America Stops“.

I went and found that original report and I was stunned as I read it.

The truth is that our “just in time” inventory and delivery systems leave us incredibly vulnerable to a nationwide disaster.

You see, it is very expensive to hold and store inventory, so most manufacturers and retailers rely on a continual flow of deliveries that are scheduled to arrive “just in time”, and this significantly reduces their operating expenses.

This is considered to be good business practice for manufacturers and retailers, but it also means that if there was a major nationwide transportation disruption that our economic system would grind to a halt almost immediately.

Once store shelves are picked clean, they would not be able to be replenished until trucks could get back on the road.  In the event of a major nationwide disaster, that could be quite a while.

So what could potentially cause a nationwide transportation shutdown?

Well, it is easy to imagine a lot of potential scenarios – a volcanic eruption, a historic earthquake, an EMP attack, a solar megastorm, a war, a major terror attack, an asteroid strike, a killer pandemic, mass rioting in U.S. cities, or even martial law.

If something caused the trucks to stop running, life in America would immediately start changing.

So exactly what would that look like?

The following is an excerpt from the report mentioned above put out by the American Trucker Associations entitled “When Trucks Stop, America Stops“….

*****

A Timeline Showing the Deterioration of Major Industries Following a Truck Stoppage

The first 24 hours

• Delivery of medical supplies to the affected area will cease.
• Hospitals will run out of basic supplies such as syringes and catheters within hours. Radiopharmaceuticals will deteriorate and become unusable.
• Service stations will begin to run out of fuel.
• Manufacturers using just-in-time manufacturing will develop component shortages.
• U.S. mail and other package delivery will cease.

Within one day

• Food shortages will begin to develop.
• Automobile fuel availability and delivery will dwindle, leading to skyrocketing prices and long lines at the gas pumps.
• Without manufacturing components and trucks for product delivery,
assembly lines will shut down, putting thousands out of work.

Within two to three days

• Food shortages will escalate, especially in the face of hoarding and consumer panic.
• Supplies of essentials—such as bottled water, powdered milk, and
canned meat—at major retailers will disappear.
• ATMs will run out of cash and banks will be unable to process
transactions.
• Service stations will completely run out of fuel for autos and trucks.
• Garbage will start piling up in urban and suburban areas.
• Container ships will sit idle in ports and rail transport will be disrupted, eventually coming to a standstill.

Within a week

• Automobile travel will cease due to the lack of fuel. Without autos and busses, many people will not be able to get to work, shop for groceries, or access medical care.
• Hospitals will begin to exhaust oxygen supplies.

Within two weeks

• The nation’s clean water supply will begin to run dry.

Within four weeks

• The nation will exhaust its clean water supply and water will be safe for drinking only after boiling. As a result gastrointestinal illnesses will increase, further taxing an already weakened health care system.

This timeline presents only the primary effects of a freeze on truck travel. Secondary effects must be considered as well, such as inability to maintain telecommunications service, reduced law enforcement, increased crime, increased illness and injury, higher death rates, and likely, civil unrest.

*****

Earlier in the report, the reasons why America’s water supply would be in such jeopardy are described in greater detail….

According to the American Water Works Association, Americans drink more than one billion glasses of tap water per day. For safety and security reasons, most water supply plants maintain a larger inventory of supplies than the typical business. However, the amount of chemical storage varies significantly and is site specific. According to the Chlorine Institute, most water treatment facilities receive chlorine in cylinders (150 pounds and one ton cylinders) that are delivered by motor carriers. On average, trucks deliver purification chemicals to water supply plants every seven to 14 days. Without these chemicals, water cannot be purified and made safe for drinking. Without truck deliveries of purification chemicals, water supply plants will run out of drinkable water in 14 to 28 days. Once the water supply is drained, water will be deemed safe for drinking only when boiled. Lack of clean drinking water will lead to increased gastrointestinal and other illnesses, further taxing an already weakened healthcare system.

Can you see why I always recommend that you make sure that you and your family have access to fresh water and a way to purify it?

This report should be very sobering for all of us.

What would you and your family do if you had no food, no clean water and the stores were shut down because their supplies were gone?

An article by Tess Pennington entitled “Emergency Items: What Will Disappear First” contains a list of 100 things that are likely to disappear from store shelves first.  The following are the first 10 things on her list….

1. Generators (Good ones cost dearly. Gas storage, risky. Noisy…target of
thieves; maintenance etc.)
2. Water Filters/Purifiers
3. Portable Toilets
4. Seasoned Firewood. Wood takes about 6 – 12 months to become dried, for home
uses.
5. Lamp Oil, Wicks, Lamps (First Choice: Buy CLEAR oil. If scarce, stockpile
ANY!)
6. Coleman Fuel. Impossible to stockpile too much.
7. Guns, Ammunition, Pepper Spray, Knives, Clubs, Bats & Slingshots.
8. Hand-can openers, & hand egg beaters, whisks.
9. Honey/Syrups/white, brown sugar
10. Rice – Beans – Wheat

You can find the rest of the list right here.

Most Americans just assume that they will always be able to run out to the supermarket or to Wal-Mart and buy anything that they need.

But if the trucks stop running that will change almost overnight.

After reading the information above, does anyone out there still believe that preppers are crazy?

The truth is that there are good, solid reasons why millions of Americans have been storing up food, water filters and other supplies.

Our world is becoming increasingly unstable, and all of us need to get educated about how to prepare for the difficult years that are coming.

One nightmarish event can change everything that we take for granted in a single moment.

Just remember what happened after Hurricane Katrina.  Even though that was only a regional disaster, millions of people had their lives completely turned upside down by that tragedy.

Don’t make the mistake of assuming that just because the U.S. has always known tremendous peace and prosperity since World War II that things will always be that way.

Our lives will only continue to be “normal” as long as the trucks continue running.

When the trucks stop running in America, there will be mass chaos.

Are you prepared for that?

 

The Next Great Depression? Its Coming, if your not ready, your dead.

The Economic Collapse

Are You Prepared For The Coming Economic Collapse And The Next Great Depression?

http://theeconomiccollapseblog.com

Not So Fast On That Whole Economic Recovery Thing

 

Not so fast.  Those that are publicly declaring that an economic recovery has arrived are ignoring a whole host of numbers that indicate that the U.S. economy is in absolutely horrendous shape.  The truth is that the health of an economy should not be measured by how well the stock market is doing.  Rather, the truth health of an economy should be evaluated by looking at numbers for things like jobs, housing, poverty and debt.  Some of the latest economic statistics indicate that unemployment is getting a little bit worse, that the housing market continues to deteriorate, that poverty in America continues to soar and that our debt problem is worse than ever.  If we were truly experiencing the kind of economic recovery that the United States has experienced after every other post-World War II recession we would see a sharp improvement across the board in most of our economic statistics.  But that simply is not happening.  Sadly, this is about as much of an “economic recovery” as we are going to get because soon the economy will be getting much worse.  So enjoy this period of relative stability while you can.

The Obama administration would have us believe that unemployment in the United States has declined, but the truth is that the percentage of working age Americans that are employed has stayed very, very flat for more than two years and now there are some measures of unemployment that are actually getting worse.

For example, according to Gallup the unemployment rate in the United States has risen from 8.5% in December to 8.6% in January to 9.1% in February.  The Obama administration would have us believe that it is actually going the other direction.

Initial unemployment claims are rising again.  For the week ending March 3rd, they increased by 8,000 over the previous week to 362,000.  This is not the kind of good news that people were hoping for.

What the U.S. economy could really use are millions of good jobs.  But those are being shipped out of the country at a staggering pace.

Right now there are millions of Americans in their prime working years that are sitting at home wondering what to do with their lives.  The average duration of unemployment in the United States continues to hover near a record high, and if we were truly experiencing an economic recovery it should have been falling by now.

But a lot of Americans have bought into the propaganda about an economic recovery and they are out running up huge amounts of debt once again.  In January, consumer credit increased by much more than expected.  The following is from a recent Reuters report….

Nonrevolving credit, which includes auto loans as well as student loans made by the government, rose $20.723 billion during the month. That was the biggest increase in dollar terms since November 2001, when credit was surging in the wake of the September 11 attacks in New York and Washington.

Don’t fall into the trap of debt slavery.  During the last recession millions of Americans lost their homes and most of what they owned because they got overextended.

Don’t do it.

The U.S. housing market continues to deeply struggle as well.  If we were really in an economic recovery housing would be bouncing back.  But that is not happening.  Just consider the following facts….

*The number of new homes sold in the United States continues to hover near a record low.

*U.S. home prices in the 4th quarter of 2011 were four percent lower than they were during the 4th quarter of 2010.

*According to CoreLogic, 22.8 percent of all homes with a mortgage in the United States were in negative equity as of the end of the 4th quarter of 2011.  That was an increase from 22.1 percent in the third quarter.

Why are things still getting worse for the U.S housing market?

That is a really good question.

We should have seen some improvement by now.

But it isn’t happening.

Also, poverty in America continues to explode.

For example, the number of Americans on food stamps has increased to 46.5 million – a brand new all-time record.

If we really were in an economic recovery, wouldn’t that number be going down?

We should be thankful that the U.S. economy is not declining as rapidly as it was during 2008 and 2009.  But what we are experiencing right now is not an economic recovery.  It is simply just a bubble of false hope.

The big problem is that our nation is covered in an ocean of constantly expanding debt.

U.S. consumers are drowning in debt, U.S. businesses have pushed debt levels to the red line, and the U.S. financial system is massively overleveraged.

Of course government debt is our biggest debt problem of all.

All over the nation, state and local governments are on the verge of financial ruin.

If we were in the middle of an economic recovery, so many states would not be in crisis mode.  A recent article in the Los Angeles Times declared that “California could run out of cash in March“.  As the economy continues to crumble we are going to hear a lot more of this kind of thing.

A lot of local governments around the nation are on the verge of total financial collapse.  Stockton, California has announced that they will be defaulting on some debt payments, and Suffolk County in New York recently declared a fiscal emergency after discovering that it would rack up more than 500 million dollars of debt between 2011 and 2013.

Keep your eyes open for more news items like this in the months ahead.

Of course the biggest problem of all is the U.S. national debt and it continues to rapidly get worse.

According to the Congressional Budget Office, the U.S. government had a budget deficit of 229 billion dollars in the month of February.  That is the worst one month budget deficit in the history of the United States.

The Congressional Budget Office also says that the U.S. government is now borrowing 42 cents of every single dollar that it spends.

Ouch.

The U.S. national debt has gotten more than 59 times larger since 1950.

The U.S. national debt is now more than 22 times larger than it was when Jimmy Carter became president.

Are there any words in the English language that are strong enough to describe how foolish we have been?

Of course we won’t be able to accumulate so much debt indefinitely.  At some point the trillion dollar deficits will stop and our false prosperity will disappear.

If you want to get an idea of what happens then, just take a look at Greece.

But Barack Obama and most members of the U.S. Congress don’t really care about what they are doing to our future.

What they care about is winning the next election so that they can continue living their fabulous lives.

Barack Obama is supposed to be taking care of the American people, but instead he has been very busy taking care of the people who helped him get elected.  Politics in America is all about money.  Just check out the following very short excerpt from a recent article in the Washington Post….

More than half of Obama’s 47 biggest fundraisers, those who collected at least $500,000 for his campaign, have been given administration jobs. Nine more have been appointed to presidential boards and committees.

At least 24 Obama bundlers were given posts as foreign ambassadors, including in Finland, Australia, Portugal and Luxembourg. Among them is Don Beyer, a former Virginia lieutenant governor who serves as ambassador to Switzerland and Liechtenstein.

Washington D.C. is deeply corrupt and if you are waiting for our politicians to fix our problems you are going to be deeply disappointed.

The federal government is not going to save you.

Our politicians are not going to save you.

You better figure out how you are going to take care of yourself and your family in the years ahead because this is about as good as things are going to get.

This “economic recovery” is about to end and more pain is about to begin.

Greece Has Defaulted – Which Country In Europe Is Next?

Well, it is official.  The restructuring deal between Greece and private investors has been pushed through and the International Swaps and Derivatives Association has ruled that this is a credit event which will trigger credit-default swap contracts.  The ISDA is saying that there are approximately $3.2 billion in credit-default swap contracts on Greek debt outstanding, and most analysts expect that the global financial system will be able to absorb these losses.  But still, 3.2 billion dollars is nothing to scoff at, and some of these financial institutions that wrote a lot of these contracts on Greek debt are going to be hurting.  This deal with private investors may have “rescued” Greece for the moment, but the consequences of this deal are going to be felt for years to come.  For example, now that Greece has gotten a sweet “haircut” from private investors, politicians in Portugal, Italy, Spain and other European nations are going to wonder why they shouldn’t get some “debt forgiveness” too.  Also, private investors are almost certainly going to be less likely to want to loan money to European nations from now on.  If they will be required to take a massive haircuts at some point, then why in the world would they want to lend huge amounts of money to European governments at super low interest rates?  It simply does not make sense.  Now that Greece has defaulted, the whole game is going to change.  This is just the beginning.

The “restructuring deal” was approved by approximately 84 percent of all Greek bondholders, but the key to triggering the payouts on the credit-default swaps was the fact that Greece decided to activate the “collective action clauses” which had been retroactively inserted into these bonds.  These collective action clauses force most of the rest of the bondholders to go along with this restructuring deal.

A recent article by Ambrose Evans-Pritchard explained why so many people were upset about these “collective action clauses”….

The Greek parliament’s retroactive law last month to insert collective action clauses (CACs) into its bonds to coerce creditor hold-outs has added a fresh twist. These CAC’s are likely to be activated over coming days. Use of retroactive laws to change contracts is anathema in credit markets.

If a government can go in and retroactively change the terms of a bond just before it is ready to default, then why should private investors invest in them?

That is a very good question.

But for now the buck has been passed on to those that issued the credit-default swaps.  As mentioned above, the ISDA says that there are approximately $3.2 billion in Greek credit-default swaps that will need to be paid out.

However, that number assumes that a lot of hedges and offsetting swaps cancel each other out.  When you just look at the raw total of swaps outstanding, the number is much, much higher.  The following is from a recent article in The Huffington Post….

If you remove all hedges and offsetting swaps, there’s about $70 billion in default-insurance exposure to Greece out there, which is a little bit bigger pill for the banking system to swallow. Is it possible that some banks won’t be able to pay on their default policies? We’ll find out.

Yes, indeed.  We will find out very soon.

If some counterparties are unable to pay we could soon see some big problems cascade through the financial system.

But even with this new restructuring deal with private investors, Greece is still in really bad shape.

German Finance Minister Wolfgang Schaeuble told reporters recently that it “would be a big mistake to think we are out of the woods”.

Even with this new deal, Greek debt is still projected to be only reduced to 120 percent of GDP by the year 2020.  And that number relies on projections that are almost unbelievably optimistic.

In addition, there are still a whole host of very strict conditions that the Greek government must meet in order to continue getting bailout money.

Also, the upcoming Greek elections in just a few weeks could bring this entire process to an end in just a single day.

So the crisis in Greece is a long way from over.

The Greek economy has been in recession for five years in a row and it continues to shrink at a frightening pace.  Greek GDP was 7.5 percent smaller during the 4th quarter of 2011 than it was during the 4th quarter of 2010.

Unemployment in Greece also continues to get worse.

The average unemployment rate in Greece in 2010 was 12.5 percent.  During 2011, the average unemployment rate was 17.3 percent, and in December the unemployment rate in Greece was 21.0 percent.

Young people are getting hit the hardest.  The youth unemployment rate in Greece is up to an all-time record of 51.1 percent.

The suicide rate in Greece is also at an all-time record high.

Unfortunately, there is no light at the end of the tunnel for Greece at this point.  The latest round of austerity measures that are now being implemented will slow the economy down even more.

Sadly, several other countries in Europe are going down the exact same road that Greece has gone.

Investors all over the globe are wondering which one will be the “next Greece”.

Some believe that it will be Portugal.  The following is from a recent article in The Telegraph….

“The rule of law has been treated with contempt,” said Marc Ostwald from Monument Securities. “This will lead to litigation for the next ten years. It has become a massive impediment for long-term investors, and people will now be very wary about Portugal.”

Right now, the combination of all public and private debt in Portugal comes to a grand total of 360 percent of GDP.

In Greece, the combined total of all public and private debt is about 100 percentage points less than that.

So yes, Portugal is heading for a world of hurt.  The following is more about Portugal from the recent Telegraph article mentioned above….

Citigroup expects the economy to contract by 5.7pc this year, warning that bondholders may face a 50pc haircut by the end of the year. Portugal’s €78bn loan package from the EU-IMF Troika is already large enough to crowd out private creditors, reducing them to ever more junior status.

So why should anyone invest in Portuguese debt at this point?

Or Italian debt?

Or Spanish debt?

Or any European debt at all?

The truth is that the European financial system is a house of cards that could come crashing down at any time.

German economist Hans-Werner Sinn is even convinced that the European Central Bank itself could collapse.

There is a Der Spiegel article that everyone out there should read.  It is entitled “Euro-Zone Central Bank System Massively Imbalanced“. It is quite technical, but if this German economist is correct, the implications are staggering.

The following is from the first paragraph of the article….

More than a year ago, German economist Hans-Werner Sinn discovered a gigantic risk on the balance sheets of Germany’s central bank. Were the euro zone to collapse, Bundesbank losses could be half a trillion euros — more than one-and-a-half times the size of the country’s annual budget.

So no, the European debt crisis is not over.

It is just getting warmed up.

Get ready for a wild ride.

15 Potentially Massive Threats To The U.S. Economy Over The Next 12 Months

We live in a world that is becoming increasingly unstable, and the potential for an event that could cause “sudden change” to the U.S. economy is greater than ever.  There are dozens of potentially massive threats that could easily push the U.S. economy over the edge during the next 12 months.  A war in the Middle East, a financial collapse in Europe, a major derivatives crisis or a horrific natural disaster could all change our economic situation very rapidly.  Most of the time I write about the long-term economic trends that are slowly but surely ripping the U.S. economy to pieces, but the truth is that just a single really bad “black swan event” over the next 12 months could accelerate our economic problems dramatically.  If oil was cut off from the Middle East or a really bad natural disaster suddenly destroyed a major U.S. city, the U.S. economy would be thrown into a state of chaos.  Considering how bad the U.S. economy is currently performing, it would be easy to see how a major “shock to the system” could push us into the “next Great Depression” very easily.  Let us hope that none of these things actually happen over the next 12 months, but let us also understand that we live in a world that has become extremely chaotic and extremely unstable.

In the list below, you will find some “sudden change” events that are somewhat likely and some that are quite unlikely.  I have tried to include a broad range of potential “black swan events”, but there are certainly dozens more massive threats that could potentially be listed.

The following are 15 potentially massive threats to the U.S. economy over the next 12 months….

#1 War With Syria – U.S. Senator John McCain is now publicly calling for U.S. airstrikes against Syria.  A military conflict with Syria becomes more likely with each passing day.

#2 War With Iran – A war in the Middle East involving Iran could literally erupt at any time.  The following is from a Reuters news report that was issued on Monday….

President Barack Obama appealed to Benjamin Netanyahu on Monday to give sanctions time to curb Iran’s nuclear ambitions, but the Israeli prime minister offered no sign of backing away from possible military action, saying his country must be the “master of its fate.”

#3 A Disorderly Greek Debt Default – Many reporters in Europe seem to think that this is becoming increasingly likely.  So what would a disorderly Greek debt default mean for the global financial system?  A leaked report that was authored by the Institute of International Finance says that a disorderly Greek debt default would have some very serious consequences.  You can read the full text of that leaked report right here.

#4 An Economic Collapse In Spain – Spain has one of the largest economies in Europe and it is rapidly becoming a basket case.  As I have written about previously, the unemployment rate in Spain has hit 19.9 percent, and the unemployment rate for workers under the age of 25 is up to 49.9 percent.  Unfortunately, the situation in Spain continues to deteriorate.  The following is from a recent article by Marc Chandler….

However, the devolution in Spain is particularly troubling. The new fiscal compact had just been signed last week, which includes somewhat more rigorous fiscal rule and enforcement, when Spain’s PM Rajoy revealed that this year’s deficit would come in around 5.8 percent of GDP rather the 4.4 percent target. This of course follows last year’s 8.5 percent overshoot of the 6 percent target.

The problem that for Spain is that the 4.4 percent target was based on forecasts for more than 2 percent growth this year. However, in late February, the EU cuts its forecast to a 1 percent contraction. This still seems optimistic. The IMF forecasts a 1.7 percent contraction, which the Spanish government now accepts.

#5 The Price Of Gasoline – The average price of a gallon of gasoline in the United States has risen for 27 days in a row and is now up to $3.77.  Virtually all forms of economic activity are affected by the price of gasoline, and if the price of gas keeps going up it is eventually going to have dramatic consequences for the U.S. economy.

#6 The Student Loan Debt Bubble – Just like we saw with the housing bubble, the student loan debt bubble just continues to grow and grow and grow.  At some point the nearly 1 trillion dollar bubble is going to burst.  What effect will it have on our financial system when that finally happens?

#7 State And Local Government Debt Crisis – It is being reported that California is running out of cash again and there are cities all over the country that are on the verge of bankruptcy.  Could we see a significant municipal bond crisis in the next 12 months?

#8 The Collapse Of A Major U.S. Bank – A number of top U.S. banks are looking increasingly shaky.  In a recent article, David Trainer explained why he has such serious concerns about Bank of America right now….

In my opinion, there are four actions taken by financial services that signal the company is headed to serious trouble.

1. Management shake-up and major layoffs – lots of layoffs over the past year

2. Exploiting accounting rules to boost earnings – SFAS 159

3. Drawing down reserves to boost earnings: to the tune of $13.3 billion in 2011 and 2012

4. Bilking customers with new fees: tried it before and trying it again

Bank of America has taken all four steps.

#9 A Derivatives Crisis – The International Swaps and Derivatives Association recently ruled that the Greek debt deal will not trigger payouts on credit default swaps.  This is seriously shaking confidence in the global market for derivatives.  But the global financial system simply cannot afford a major derivatives crisis.

Estimates of the notional value of the worldwide derivatives market range from $600 trillion all the way up to $1.5 quadrillion.  The notional value of all derivatives held by Bank of America is approximately $75 trillion.  JPMorgan Chase is holding derivatives with a notional value of approximately $79 trillion.

When the derivatives bubble finally bursts it is going to be a financial horror show unlike anything we have ever seen.

#10 The Fall Of The Japanese Economy – The Japanese economy shrank at a 2.3 percent rate during the fourth quarter of 2011.  Japan has a debt to GDP ratio of over 200 percent and a major debt crisis involving Japan could erupt at any time.

#11 A “Solar Megastorm” – Scientists tell us that there is a “1 in 8 chance” that a “solar megastorm” will hit the earth by 2014.  A recent Daily Mail article detailed what some of the consequences of such an event would be….

‘We live in a cyber cocoon enveloping the Earth. Imagine what the consequences might be,’ Daniel Baker, of the University of Colorado’s Laboratory for Atmospheric and Space Physics told National Geographic when asked about a potential ‘megastorm’.

‘Every time you purchase a gallon of gas with your credit card, that’s a satellite transaction.

‘Imagine large cities without power for a week, a month, or a year. The losses could be $1 to $2 trillion, and the effects could be felt for years.

#12 A Major West Coast Earthquake Or Volcanic Eruption – On Monday, there was a 4.0 earthquake in San Francisco and a 6.1 earthquake in Argentina.  Is the “Ring of Fire” waking up again?

#13 Tornado Damage To Major U.S. Cities – Last year, the U.S. experienced one of the worst tornado seasons of all time.  This year, we have already seen the worst tornado outbreak ever recorded in the United States in the month of March.  A couple of towns in Indiana were completely wiped out by that outbreak.  So what should we expect when we get to the heart of tornado season this year?

#14 Severe Drought In The United States – Last summer was one of the driest summers on record in the United States, and in many areas there is simply not enough water available for farmers this year.  Some are even projecting that we could see “dust bowl conditions” return to some areas of the country eventually.

#15 An Asteroid Strike In 2013 – Although scientists tell us that the probability is extremely low, the truth is that there is a slight chance that a sizeable asteroid could hit the earth in February 2013.  The asteroid is estimated to be between 60 and 100 meters wide, and it is projected to pass by our planet “at a distance of under 27,000 km“.  If it did hit us (and scientists say that the odds of that happening are very low) it would potentially be as serious an event as the Tunguska Event in Siberia in 1908.  Mac Slavo of shtfplan.com recently described how awesome the Tunguska Event really was….

On June 30, 1908 an incoming meteor exploded approximately 5 miles above Siberia. The force of the air burst explosion, estimated at between 15 and 30 megatons, or about 1000 times bigger than the atomic bomb that destroyed Hiroshima, was so powerful that it annihilated everything in an 830 square mile area, and reports suggest that that explosion was heard up to 1000 miles away. Because of the remoteness of the impact zone, the Tunguska Event over Siberia had very little effect on the human population in the region, but the destruction of some 80 million trees in the area shows just how powerful a blast was created.

Of course there are so many other “sudden change” events that could potentially happen – a terror event in a major U.S. city, a deadly pandemic, an EMP attack, cyberterrorism or a major political scandal could all possibly cause a stock market crash and an economic collapse in the United States.

In the world that we are living in today, you just never know what is going to happen.

So what are all of you concerned about over the next 12 months?

Do you see the potential for some “black swan events” to happen?

Please feel free to post a comment with your thoughts below….

 

Detroit’s Received More Than a Trillion in Aid Since the Inception of Black-Rule in 1973

Detroit Mayor David Bing to ask for $150 million in aid; Detroit’s Received More Than a Trillion in Aid Since the Inception of Black-Rule in 1973

http://stuffblackpeopledontlike.blogspot.com/

 

“Detroit, the place where capitalism failed.”
63 Alfred Street: Built by white people 130 plus years ago

This quote comes from the book 63 Alfred Street: Where Capitalism Failed by John Kossik, which blames the failures on Detroit for the inability of capitalism to work in a city where the immutable laws of the Visible Black of Economics have been at work for decades.

Kossik focuses his thesis on the tragic ruins of a Venetian Gothic mansion, built more than 130 years ago when white people were more than 99 percent of population there.
Capitalism didn’t fail Detroit, for it is capitalism that has allowed the lily-white suburbs to thrive, courtesy of the ingenuity of the people living there to innovate and produce something of wealth and value. Their labor is rewarded; in Detroit, the exact opposite is on display, courtesy of the Black population (89 percent of the city) found there.
Though it is not formal yet, Detroit’s beleaguered mayor is going to do what the first Black mayor of Detroit – Coleman Young – did so well: beg, plead, and pray for federal grants, federal aid, and or a loan to help keep the city moving forward. The Detroit News reported:

Mayor Dave Bing is seeking $125 million to $150 million in a short-term loan from the state to help fix the city’s fiscal crisis, Bing’s office confirmed Thursday night.

Bing’s request follows his State of the City speech Wednesday night where he vowed to keep an emergency manager out of the city and called for “tangible support” from the state, including financial and operational support.

 To stave off the collapse of the city – the Detroit School System has already been taken over by the state, a system that spends $15,000+ per pupil but produces the lowest big city standardized test scores in all of America and a population that is nearly 50 percent illiterate – and the implementation of an emergency manager to assume control of the city’s finances, Mayor Bing is resorting to playing the role Coleman Young made famous: Demand more money, and have absolute no return on investment to show for the federal aid, federal grant, or money borrowed to help Detroit move forward.
Same building today: Neglected under Black-rule in Detroit

Wilbur Rich’s book Coleman Young and Detroit Politics: From Social Activist to Power Broker was basically a running apology for the mismanagement of federal aid that Young was able to convince the government to keep sending Detroit’s way.

Between 2009 – 2011 alone, Detroit Public Schools snagged $200 million in federal stimulus money (the largest amount given to any school system in the state of Michigan). The test scores and graduation rate produced by these Black scholars (96 percent of the K-12 student body in Detroit is Black) didn’t magically go up, though the drop-out rate did. Worse, Wayne County – home to Detroit – received a total of $2.4 billion in stimulus dollars between that same time.
Where did that money go?

The same place that the $11 million grant to help low-income job seekers enrich their wardrobes with appropriate attire for interviews (of which only two people were helped). The same place where the $50 million that is sent each year by the federal government for Head Start went:

Following complaints that the Detroit Human Services Department fostered an environment of nepotism, reckless spending and corruption to the detriment of the early childhood education program Head Start, the federal government plans to stop sending $50 million a year to the city to fund the program, the Free Press learned Thursday.

Head Start has been declared a failure, by the way. Meaning that the $50 million given to Detroit each year for more than 30 years has been a monumental waste of taxpayer money.
In July of 2011, the Detroit Free Press reported on another city department mismanaging $75 million in federal funds:

The FBI is investigating the city’s Human Services Department over misspent tax dollars and its handling of $100 million in federal grants.There’s been a continuing police investigation into how the city’s Department of Health and Wellness Promotion has handled about $75 million in state and federal funds. And Detroit Mayor Dave Bing fired the department’s director, Yvonne Anthony, in May.

More than 25 of Bing’s top appointees have left the city in the last two years, and Bing has pleaded with Detroit’s corporate community to be more active in helping to revitalize the city.

Federal grants are needed to keep the police on the streets, even though they’ve stopped responding to 911 calls; federal grants are needed to keep firefighters employed. Indeed, federal grants to the tune of millions of dollars are even needed to keep neighborhoods stabilized, though no evidence for stability exists.
There is no tax-base in Detroit anymore. The wealth producers (i.e. white people) fled when the threat of criminality – almost entirely by Black people – became too great in the late 1960s.  Those Black people who are in the middle-to-upper-middle class in Detroit are there because of intense affirmative action in the city’s government (and in the distribution of contracts to private contractors).
Fitting that Lyndon B. Johnson designated Detroit a “Model City” in the early 1960s, where hundreds of millions of dollars were poured into The Motor City to help alleviate poverty and help the growing Black population get off their knees and onto their feet.
By helping them on their knees with hundreds of millions of aid, Detroit’s progressive white Mayor Jerry Cavanagh could only watch in horror as Black people engaged in the most destructive riot in American history, burning significant parts of the city, helping convince hundreds of thousands of white people to move into the suburbs immediately.  The New York Times reported in 1997, 30 years after those devastating riots that Detroit never recovered from, that the misery of Black-rule in Detroit was still better than what they had rioted against:

There were nearly four dozen riots and more than 100 smaller cases of civil unrest in the United States in 1967, but Detroit’s riots were the deadliest. A Presidential commission later attributed most of the 43 deaths to police officers and National Guardsmen who, in the commission’s view, had gone out of control.The long-simmering anger of black residents at an abusive, mostly white police force erupted here in the early morning hours of July 23, 1967, and lasted five days. The flash point was a raid by white police officers on an after-hours drinking and gambling club at the corner of 12th and Clairmount Streets, in a heavily black neighborhood. By the time the smoke cleared almost a week later, 683 buildings across the city had been damaged or destroyed and tanks had rolled through the streets. But the riots exacerbated demographic shifts that had begun a decade before in many big cities. Around 1940, many Southern blacks, like various immigrant groups before them, moved to Detroit for the work in the automobile factories. The city’s population at the time of the riots was one-third black, and by 1990 that percentage had grown to 76 percent.Even before the riots, many middle-class Detroit residents, particularly whites, had begun moving to the newly built suburbs, commuting to work on the broad highways being built. But the riots turned the steady stream of people moving to the suburbs into a torrent. Businesses followed their customers. Thousands of houses were abandoned as the city’s population plunged to 992,000 from 1.6 million at the time of the riots. Even today, some black residents refer to the upheaval here 30 years ago as a rebellion against racist white authority rather than a riot. The site where the troubles began, 12th Street, was renamed Rosa Parks Boulevard in 1976, after the civil rights heroine from Montgomery, Ala., who refused to give up her bus seat to a white man and who later moved to Detroit.

What happened in Detroit is a strangely mirrors what happened in South Africa. The Great Migration of Blacks from the South in the early decades of the 20th century eventually overwhelmed the white population of Detroit. Black people had nothing to do with building Detroit; but they have had everything to do with destroying it.
Same goes with South Africa.
Since 1973, when the city was roughly 50 percent white and 50 percent Black (and boasting a population almost double– of which 89 percent are Black today – the 770,000 it is today), the various – all have been Black – mayors of Detroit have had to rely on grants, borrowing funds, and federal aid to keep the city going.
Fitting that the white residents of Detroit in 1973 – before packing their bags and heading to the suburbs to thrive – tried to save the city via the ballot box. Charles M. Carey’s African-America Political Leaders tells us this about the year Young was first elected:

In 1973 Young declared his candidacy for mayor of Detroit. His opponent was John F. Nichols, the white commissioner of the police who was running on a “law and order” platform. Young stole his thunder by promising to get rid of all kinds of crime, including police brutality. The polls indicated that more than 90 percent of whites favored Nichols, while more than 90 percent of the blacks favored Young. Since African Americans barely outnumbered white in Detroit, Young won by a few thousand votes.

Young didn’t get rid of crime, with Detroit instantly becoming one of the most dangerous cities in the world, known as the “Murder Capital” of America in the 1970s. Today, the police don’t even report – nor respond to 911 calls – the crime rate.
The floodgates for hiring Black people to get back at whitey began, with Young hiring more Black officers, firefighters, and municipal clerks. No longer could city employees live in the suburbs, they were forced to live in the city.
According to The Quotations of Coleman A. Young, this employment of affirmative action hiring policies had a purpose, with the newly elected Young saying:

 “Some people say affirmative action is discrimination in reverse. You’re damned right. The only way to handle discrimination is to reverse it.”

The past is never past. The lesson of Detroit is the lesson for America; once in power, the presumed inequities of the past will be rectified. In the case of The Motor City, the lingering – dwindling – white population was severely discriminated against, and yet they were asked to pay the bill for their own dispossession.
They deserve no pity. The citizens of Detroit deserve no mercy.
The state of Michigan has created 16 “Michigan Renaissance Zones” in Detroit, which are virtually free of any taxation. The whole concept of “enterprise zones” is that instantly – without government intrusion through taxes – capitalism should flourish.
But capitalism hasn’t flourished. It would not be far fetched to state that trillions of taxpayer money (via federal loans, grants, and stimulus aid) over a span of fifty-sixty years has poured into Detroit. Whether it was to fight poverty, improve the test scores and graduation of primarily Black students, fight crime, maintain infrastructure, stimulate economic growth, or just pay city bills, the aid has been a waste.
Elliot Washington in 2008 wrote these words about Detroit, with have no basis in reality:

Since the early 1930s and FDR, Detroit has had a tragic love affair with liberalism, the consequences of which have to a degree been comparable to the sieges by the cruel superpowers of antiquity – Egypt, Babylon, Assyria, Persia, Greece, Rome, the Huns, the Mongols. True, in Detroit there are no siege works here, no boiling oil, flaming arrows, catapults or battering rams, yet the barbarian hoards are not only at the gates, but are within the city gates, and these people, infected by a stubborn liberal mindset, are surely killing this town.

The white citizens of Detroit left, after being electorally defeated in a true racial election in 1973. This was after most had left because of the Black riot in 1967 and the high rates of Black crime that white citizens encountered in Detroit.

They built flourishing suburbs wherever they went, leaving behind a city they built to be ruled by Coleman Young and his Black friends.
Liberalism didn’t destroy Detroit anymore than capitalism did. It has been the ingenuity of others and the wealth they have created, which has been taxed by a government dedicated to the advancement of Black-Run America (BRA), and sent as federal aid and federal grants that have kept the city of Detroit going to this day.
In the Batman story No Man’s Land, Gotham City is hit with a massive earthquake that destroys the city. The cost of rebuilding is so great, the United States government decides to blow up every bridge out of Gotham and build a wall around the city, with 24/7 armed guards keeping everyone in the city (via huge walls) and preventing anyone from entering.  Even members of the clergy and philanthropic organizations are barred from entering.
This could be one of the solutions to the Detroit problem.
Or, like the plan in Robocop, a private company could bailout the city, privatizing all of the agencies (police, fire department, waste, public transit, etc.) there in the process.
Knowing that neither of these two options would ever be implemented, it must be stated that Detroit must never be bailed out again.
Taxpayer money shouldn’t continue to support a city built on reversing the perceived racism of the past, blaming whitey for every problem that Black people encounter along the way.
It’s time Black people take responsibility for their actions. In this case, we are talking about the demise of one of the great American cities. Scratch that, one of the great cities of the world.
Black people forced white people out of Detroit, who in turn rebuilt the city in their image in the surrounding lily-white suburbs.
Commerce, innovation, and economic activity flourish there.
Detroit? Regression to the mean.
The Visible Black Hand of Economics on display for the world to see. Pumped with a continuous infusion of federal grants and federal aid (your taxpayer money that could have gone to space exploration or cancer research), Detroit has continued to deteriorate under Black rule.
Mayor Bing must be told “no” when he formally requests the $150 million in aid. For the sake of all Americans – Black and white, Hispanic and Asian – the citizens of Detroit must be told why the answer is “no” as well.

http://www.youtube.com/watch?v=qbsgLcV4o1k&feature=player_embedded